Bitcoin is flirting with $32,000 a coin, XRP just posted a 100% intraday rally, and suddenly cryptocurrency prices are green again.
The sudden turnaround is part of a potential perfect storm brewing, one that leads to a dramatic recovery and new all-time highs sooner than most would expect.
“Not a Security” XRP Victory Signals Relief in Crypto
The idea that cryptocurrencies could recover at all in the recent macro environment has been mocked throughout 2023. The SEC shock put pressure on the industry by labeling certain altcoins as securities, and few wanted to risk their money. in digital currencies.
But that tag was just removed from XRP, and that’s all it took to double the price in just one day. XRP has since given some of that advantage back, but it’s an impactful enough move that people start paying attention to cryptocurrencies again, especially altcoins.
A rising tide also tends to lift all boats. And with Bitcoin holding buoyant above $30,000 per coin, Ethereum holding above $1,800, and the “ripple effect” occurring in BTC dominance as a result of the XRP move, altcoins have already started to get involved.
The collapse of the dollar could help cryptocurrencies to scale | DXY on TradingView.com
The DXY and the perfect storm for Bitcoin
So how is this set up to be a perfect storm? Cryptocurrencies have been in oversold conditions for an extended period, with order books thinner today than they were in 2021. It won’t take a lot of money to start getting prices moving, based on the XRP example.
Today alone, hundreds of other altcoins posted substantial gains, simply because XRP is no longer labeled as a security. It caused an immediate run into other altcoins that are at bear market lows and priced at great value compared to 2021 ATHs.
Given the aforementioned macro landscape, many traders are still short Bitcoin and other currencies, and could soon find themselves helping push prices higher as they run out of positions. Others are not short, but are marginalized and reluctant to buy. This situation could lead to prices rising more and more.
Finally, this perfect storm is capped by inflation cooling, the stock market approaching ATHs, and the US dollar weakening based on DXY. The DXY just missed the 100 level, potentially sending a risk signal to financial markets.
It really looks like a perfect storm for cryptocurrency is upon us. pic.twitter.com/rjfGp9TE4O
— Tony “The Bull” (@tonythebullBTC) July 13, 2023
With all cryptocurrency prices in USD as its base trading pair, a perfect storm is brewing that could send prices soaring unstoppably.
This post Why Bitcoin and Crypto are Poised for a Dramatic Recovery
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